- Kenya’s High Court ruled that Sendy Limited must pay KSh 82.2 million in VAT, finding it was the principal provider of delivery services, not just a tech platform.
- The decision overturns previous rulings and sets a precedent that could require platforms like Uber, Bolt, and Glovo to pay VAT on the full transaction value, not just their commission.
- The Kenya Revenue Authority (KRA) can now pursue other digital platforms for VAT on gross transaction amounts, potentially raising business costs.
- Ride-hailing and delivery apps may have to absorb the extra tax or pass it on to consumers, leading to higher prices or reduced payouts for gig workers.
- The ruling challenges the current gig economy business model in Kenya and could reshape the industry’s future.
Source: techtrendske.co.ke
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Kenya"
- KRA Requires E-Invoicing for All Tax Compliance Certificate Applications
- KRA new mandate linking Tax Compliance Certificate (TCC) applications to e-invoicing compliance via eTIMS
- Kenya Court Orders Digital Platforms to Withhold and Remit 16% VAT on All Transactions
- Kenya KRA Enhances Tax Compliance Certificate Process with New eTIMS/TIMS Requirements
- KRA Warns Businesses Over Unverifiable Input VAT Claims, Promises Stricter Audits and Reforms
